Marketplace All-in-One A turnaround for manufacturing — can it last?
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Aug 22, 2025 The U.S. manufacturing sector is experiencing a surprising surge in business activity, raising questions about whether this growth is sustainable. Meanwhile, Evergrande's shocking collapse is not just a local disaster, as it's set to impact the global economy, with its shares now delisted from Hong Kong's stock exchange. Experts dissect the company's rapid rise and fall, exploring how excessive debt and market changes contributed to its downfall. Additionally, Tesla faces its own hurdles with the Cybertruck amidst disappointing sales projections.
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Manufacturing Rebound Fueled By Stockpiles
- U.S. manufacturing showed its strongest orders growth in 18 months, driven by a surge in employment and production.
- S&P's PMI suggests the bump is linked to tariff avoidance and temporary stockpiling rather than sustained demand gains.
Tariffs Create A Profit Squeeze
- Higher import costs from tariffs create mixed incentives for manufacturers who both compete with and rely on imports.
- That dynamic is likely to squeeze profits as firms decide how to split rising input costs among themselves and customers.
Evergrande's Rapid Rise And Extravagant Bets
- Evergrande rose rapidly from 1996 by exploiting explosive housing demand and abundant cheap credit.
- The company expanded aggressively into soccer, EVs, and theme parks, choices that helped sink it when credit tightened.